Post by leunas on Jan 15, 2007 15:52:53 GMT -5
Gamasutra posted an article days ago (January 12), and we're telling you that if you haven't looked at it yet, you should. This is one of the rare opportunities to read a real game development contract. This one is between developer "Spark Entertainment" (Spark Unlimited) and Activision Publishing for Call of Duty: Finest Hour (PS2, Xbox, GameCube).
The contract is an interesting look at the innards of the game industry... Advance Payments (10.1) and Royalties (11.1): We're talking sums as big as "Eight Million Five Hundred Thousand U.S. Dollars" in royalties and an advance payment of "Six Hundred Thousand U.S. Dollars". If you're still wondering why you have to pay so much when you buy games, there's part of the answer: developers and publishers throw around big money to get the game to market.
Speaking of market... Marketing (13.1): Activision agreed to throw in "Two Million United States Dollars" for marketing of the game. Wouldn't you like to take a peek at the marketing budget of games with big ad campaigns like Gears of War, Resistance: Fall of Man, and Legend of Zelda: Twilight Princess?
There are also interesting clauses about timing and deadlines. That makes us wonder what kind of messy clauses (and stapled-on appendices) happen with games that keep getting delayed (like the much-anticipated but still-awaited S.T.A.L.K.E.R. for the PC).
As a rule, a contract can't be shown to the public because of a confidentiality agreement that's part of the contract (you can't even tell other people what's in the contract). But Spark sued Activision in August of 2005, so the contract became filed as a court exhibit. Los Angeles Superior Court judge Tricia Ann Bigelow recently unsealed the exhibits, and that means it's now public information.
By the way, Activision sued Spark (this is the gaming industry; it's an eye for an eye), and one of the points in Activision's counter-suit was that Spark breached the confidentiality agreement when Spark filed its lawsuit.
Gamasutra's article includes running commentary and plain-English explanations of the contract. The excellent opinions and thorough analysis come from three gaming attorneys: Tom Buscaglia of gameattorney.com and Chris Bennet and Dave Spratley of the Video Game Law Blog at www.davis.ca.
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